Magna Mining (TSX:NICU) reported third-quarter financial results on Thursday. The transcript from the company’s third-quarter earnings call has been provided below.
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Summary
Magna Mining Inc. reported Q3 2026 net revenue of $27.4 million from its McCreedy West Mine, with a cash margin of $4.9 million.
Operational challenges at McCreedy West affected production, deferring some high-grade output to 2027, though issues have been resolved.
The company advanced its Lavaque and Crane Hill projects, with board approvals for the restart of Lavaque Mine and construction at Crane Hill in 2027.
A strategic investment by Alpayana bolstered the company’s cash balance to $168.4 million, increasing working capital significantly.
Safety performance improved with an 81% reduction in the total recordable injury frequency rate.
Exploration at the Levack Mine indicates potential new zones, with promising drilling results suggesting further mineralization.
Updated 2026 guidance expects production of 14.5 to 15.5 million copper equivalent pounds, reflecting revised mine sequencing and grade variability.
Management highlighted the strategic integration of McCreedy West and Levack mines to optimize resources and operational efficiency.
Full Transcript
OPERATOR
Good day and thank you for standing by. Welcome to the Magna Mining Inc. Q3 conference call and webcast. At this time all participants are in a listen-only mode. Please be advised that today’s conference is being recorded. After the speaker’s presentation there will be a question-and-answer session. To ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again.
I would now like to hand the conference over to your speaker today, Greg Huffman, Senior Vice President, Capital Markets.
Greg Huffman (Senior Vice President, Capital Markets)
Thank you, Josh, and good morning everyone. Before I get started, I would like to mention that we will be making forward-looking statements or provide forward-looking information on the call today in accordance with the applicable securities laws. Please review the press release announcing our Q3 2026 operating financial results for cautionary language regarding the use of and reliance on forward-looking statements and for the risk factors applicable to such forward-looking statements that could cause actual results to be materially different from those expressed or implied by such statements.
Any scientific or technical commentary on this call has been reviewed and approved by David King, our Senior Vice President of Exploration and Geoscience, who is a qualified person under National Instrument 43-101. With respect to non-IFRS performance measures that are referred to on this call, please refer to the reconciliation to measures of performance prepared in accordance with the IFRS accounting standards in the company’s most recently filed MD&A. All figures are in Canadian dollars unless otherwise noted. Our press release, MD&A and financial statements are available on SEDAR+ and on our corporate website.
With us today are CEO Jason Jessup, Chief Operating Officer Jeff Huffman, Chief Financial Officer Scott Gilbert, EVP Paul Fowler, SVP Exploration and Geoscience Dave King, and General Counsel Tim Bradburn. Following formal remarks from management, we will open the lines for further questions. I would now like to introduce Magna Mining CEO Jason Jessup to comment on the quarterly results.
Jason Jessup (Chief Executive Officer)
Thanks, Greg. During the third quarter of 2026 our team at the McCreedy West Mine in Sudbury, Ontario safely mined and shipped 75,272 short tons from the 700 Footwall Copper Zone, producing 3.7 million copper equivalent payable pounds. The contained grade of 3.6% copper equivalent during Q3 is a quarterly record under Magna’s ownership. However, we did experience some operational challenges which impacted tonnage and copper equivalent payable production in the quarter.
The issue has now been resolved, although it temporarily altered our mining sequence and deferred some higher-grade production into 2027. We also advanced our Lavaque and Crane Hill projects during the quarter, culminating in the release of technical studies on both projects in early Q4, with our board of directors approving the restart of Lavaque Mine and the commencement of construction of Crane Hill during 2027. In addition, during Q3 we welcomed Alpayana as our largest shareholder with the completion of a $140 million strategic investment for a 19.9% equity interest in Magna Mining.
I would now like to hand over to our Chief Financial Officer Scott Gilbert to present an overview of our financial performance in Q3.
Scott Gilbert (Chief Financial Officer)
Thanks, Jason. In Q3 2026, the McCreedy West Mine generated net revenue of $27.4 million. The precious metals stream at McCreedy West reduced net revenue in Q3 by $7 million. Our cash margin in the quarter was $4.9 million, or $0.94 per copper equivalent payable pound. During the first nine months of 2026, cash margin at McCreedy West was $19.7 million. Cash costs in Q3 were US $4.12 per copper equivalent payable pound and all-in sustaining costs were US $4.93 per copper equivalent payable pound.
For Q3 2026, the company had operating cash outflow of $0.6 million, or nil per share. In addition, free cash outflow in the quarter was $7.6 million, or negative $0.03 per share, which included $1.2 million at Lavaque Mine for mining equipment and infrastructure upgrades and $5.4 million of exploration and evaluation expenses at Crane Hill. Our cash balance at September 30, 2026 was $168.4 million, up from $40 million at June 30, 2026, following the completion of the strategic investment by Alpayana via non-brokered private placement of 62,356,682 common shares at $2.25 per share for gross proceeds of approximately $140.3 million. We ended the quarter with a working capital balance of $161.9 million. I will now hand the call over to our Chief Operating Officer, Jeff Huffman, for an overview of our operational performance in the quarter.
Jeff Huffman (Chief Operating Officer)
Thanks, Scott. During Q3 we navigated some operational challenges at McCreedy West while continuing to advance our Lavaque and Crane Hill projects. Most importantly, we operated safely across all of our operations and projects, with our total recordable injury frequency rate over the first nine months of 2026 declining to 0.43 with all hours worked on all Magna sites, including those of the many contracting firms we work alongside. This compares to 2.23 during that same period in 2025, representing an 81% reduction.
This result is a product of our ongoing commitment to preventing injuries through rigorous critical risk management, strong leadership, and disciplined execution in the field. McCreedy West produced 75,272 short tons of ore from the 700 Footwall Copper Zone at a grade of 3.6% copper equivalent for contained copper equivalent production of 5.4 million pounds. Copper equivalent grades of 3.6% during Q3 were in line with our expectations for higher grades during the second half of 2026. However, tonnage was lower than expected due to operational challenges during September related to an isolated geological structure which impacted a high-grade production stope on the 9-10 level.
This issue has now been resolved, although it temporarily altered our mining sequence, with some higher-grade production being deferred to 2027, being replaced by lower-grade material from the 1520 level during Q4. Our production costs per ton processed in Q3 were $248 per ton, reflecting lower than expected tonnage shipped during the quarter. Underground development at McCreedy West in Q3 totaled 1,934 ft, or 21 ft per day on average. Activities during the quarter at our adjacent Lavaque Mine focused on infrastructure readiness to support early ore sources and establishing underground exploration platforms to continue delineation drilling of the R2 Footwall Zone, as well as drill testing other high-priority targets. During the quarter, underground development crews at Lavaque completed development of the initial 2950 level exploitation drift towards the R2 Footwall Zone. In addition to development on the 2950 level, Lavaque personnel are continuing rehabilitation along the 2650 level from the Number 2 Shaft towards Number 3 Shaft.
The 2650 level underground exploration diamond drilling platforms will allow drilling of additional target areas in the footwall of the Number 3 ore body. Work on the production hoist plant continued with shaft rehabilitation and plant infrastructure refurbishment. The production hoist recommissioning project remains on track to be completed in Q1 of 2027. Completion of this project will allow hoisting of stockpiled development ore and waste from underground and the acceleration of underground development in preparation for pre-commercial ore production during 2027.
Finally, engineering work continues to support a portal concept to access the upper parts of Lavaque Mine. On October 8, we released the results of a preliminary economic assessment on the restart of Lavaque Mine. The PEA outlined an average annual production of 36.8 million pounds payable copper equivalent over a 7.3-year mine life. Production is based on a total mining inventory of 5.75 million short tons and a mining rate of 2,200 short tons per day at an average of 3.42% copper equivalent and does not include any production from the R2 Footwall Zone.
For a full summary of PEA results, please see our news release from October 8th. Based on positive PEA results, our board of directors has approved the restart of Lavaque Mine, with commercial production forecast for mid-2028. In order to take advantage of natural synergies between Lavaque Mine and the connected McCreedy West Mine, we have made the decision to combine the two mines into the Lavaque Mine Complex. This will allow for the sharing of technical and maintenance resources, with other positions such as surface supervision spread across the complex.
At the Crane Hill project, work during Q3 included detailed engineering and design, surface site preparation including site leveling and portal box cut excavation, as well as power line and water treatment infrastructure. On October 21st we released the results of our pre-feasibility study on Crane Hill, which demonstrated 11.4 million short tons of probable reserves with an average payable copper equivalent production rate of 35.5 million pounds over a 12-year commercial mine life.
The PFS is based on a production rate of approximately 2,400 short tons per day at a copper equivalent grade of 3.0%. For a full summary of the PFS results, please see our news release from October 21st. Based on the results of the PFS, our board of directors has approved construction of the Crane Hill project, which is anticipated to commence in 2027. I will now hand the call over to our SVP Exploration and Geoscience, Dave King, for an update on our exploration activities.
Dave King (Senior Vice President, Exploration and Geoscience)
Thanks Jeff, and good morning everyone. At Levack, three underground drill rigs were currently active during Q3 and focused on definition and expansion drilling of the R2 Footwall Zone, definition drilling of the Intermediate Zone, and testing of new exploration targets. These drills are operating from the 8450 exploration drift on the 1800 level and from the new 2950 level exploration drift located between the Morrison Footwall copper PG deposit and the R2 Footwall Zone, which was completed in early August.
Drilling from this new underground platform has targeted the copper precious metal veins of the R2 Footwall Zone with shorter drill holes at the approximate elevation where the 2950 level would intersect the zone if we extended it. The R2 Footwall Zone continues to remain open up-dip and towards the Number Three Footwall Zone, as well as at depth to the south, as highlighted in today’s exploration press release. Definition drilling within the R2 Zone continues to intersect sharp-walled massive sulfide veins, including 25.8% copper, 3.6% nickel, 8.9 grams per tonne platinum, 4.1 grams per tonne palladium, and 0.3 grams per tonne gold over 0.7 meters in drill hole MLV 2680. Drill hole 80 also intersected a 2.2-meter interval grading 9.7% copper, 0.6% nickel, 5.9 grams per tonne platinum, 10.2 grams per tonne palladium, 3.2 grams per tonne gold, and 59.2 grams per tonne silver in an undefined mineralized zone approximately 260 meters before the R2 target.
Additional interpretation and drilling will be required to understand the orientation of this mineralization and potential significance. In addition, during underground development of the new ramp to connect the 1800 level to the 1600 level, which provides access to the Intermediate ore body, a zone of sulfide mineralization was encountered over an approximately 12-meter section of the ramp. This mineralization occurs approximately 30 meters into the hanging wall of the Intermediate ore body and is characterized as structurally controlled, chalcopyrite-dominated sulfide within a footwall breccia matrix.
A single grab sample from the muck pile was assayed and returned 5.7% copper, 8.4 grams per tonne platinum, 1 gram per tonne palladium, and 0.3 grams per tonne gold. Underground drilling is currently underway to test the extent, continuity, and potential relationship of this mineralization with the Intermediate Zone. Additional assay results from this area will be released as assays are received at Crean Hill. Following geophysical compilation and geological interpretation during Q3, a surface exploration diamond drill rig has been mobilized to the site and has begun testing new footwall copper and precious metal exploration targets. Of note, this is the first exploration drilling at Crean Hill since 2024.
At McCreedy West, three underground diamond drills remain focused on definition drilling to support our near- and mid-term production plans within the 700 Footwall copper zone. The program continues to provide the detailed information required for stope design and grade optimization. During Q3 we completed 74 diamond drill holes totaling approximately 24,347 feet of drilling. The integration of McCreedy West and Levack as part of the Levack Mine Complex presents an exciting exploration opportunity as we develop an integrated structural understanding of the controls on footwall copper–precious metals mineralization in the North Range of Sudbury.
I would now like to hand it back over to Jason for some additional comments.
Jason Jessup (Chief Executive Officer)
Thanks, Dave. As you can see, it’s been a very busy few months for the Magna team. Although we were still on track to achieve the low end of our 2026 payable copper equivalent production guidance at the end of Q3, the operational challenges at McCreedy West in September necessitated revised mine sequencing for Q4, with additional higher-grade stopes deferred until 2027. As a result of these changes, as well as higher-than-expected grade variability in the revised mine plan, we believe it is prudent to update our 2026 operational guidance.
We now expect to produce 14.5 to 15.5 million copper equivalent pounds in 2026, with our full-year copper equivalent grade anticipated to be near the lower end of the original range. Now that the technical challenge of Q3 has been resolved, we are focused on optimizing Q4 and developing the best plan possible for 2027. McCreedy West is a small mine, but I believe it can continue to be a consistent cash generator for our company for years to come. At the end of Q3, the mine had generated a cash margin of 19.7 million, which is meaningful in helping us fund our growth projects within our portfolio.
On the topic of growth projects, we achieved two significant milestones in October with the release of the results of both the Levack PEA and the Crean Hill PFS. I’m very proud of the work completed by our projects team in partnership with our external consultants. On the back of the positive study results, our board has sanctioned the restart of Levack Mine and the construction of the Crean Hill project, which will begin in 2027 following the completion of detailed engineering and surface infrastructure work.
The low capex intensity production from Levack and Crean Hill will build on the base provided by McCreedy West as Magna transitions to a multi-mine company. During Q3, we also welcomed Alp ayana as our largest shareholder following the completion of their strategic equity investment. We ended Q3 with a cash balance of $168 million and are now well funded to execute our growth plan. The safety performance from Q3, along with the company culture of continuous improvement and ownership, is a reflection of more than financial performance. It demonstrates our core values, which will be mirrored at Levack and Crean Hill mines.
Our company will continue to grow on the three pillars of production, exploration, and synergistic acquisition. The exploration results announced this morning from Levack Mine are encouraging, and I believe we are on the path to another true footwall copper–precious metals discovery at Levack. Now that we are drilling again in the footwall of Crean Hill, we have multiple high-potential targets that we are currently testing. Operator, we would now like to open up the line for questions.
OPERATOR
Thank you. As a reminder, to ask a question, please press star-11 on your telephone and wait for your name to be announced. To withdraw your question, please press star-11 again. One moment for questions. Our first question comes from Eleanor Magcynski with SCP Resource Finance. You may proceed.
Eleanor Magcynski (Analyst)
Hi everyone, can you hear me okay?
Jason Jessup (Chief Executive Officer)
Yep, loud and clear, Eleanor.
Eleanor Magcynski (Analyst)
Okay, great. Busy quarter for the team. Nice to see the grade lift. I have a few questions to start off with the operations. Just curious if you could speak in a bit more detail on what happened with the structure that affected the stope that was being mined. Yeah, just a bit more detail would be helpful if it was like a hanging wall failure. What’s exactly the issue there?
Jeff Huffman (Chief Operating Officer)
Yeah, thanks for the question, Eleanor. It’s Jeff. I can answer that. We had, at the back end of our current 910 level elevation, a couple of stopes that had been cut off by a geological structure. So we actually hung up a couple of raises along the same structure. This is a structure that was sort of unknown to us at the time. We’ve done some, obviously, detailed work around understanding why those failures occurred in blasting those raises. And, you know, the CMS data and all the data that’s available to us now through drone survey and CMS data has indicated that we’ve got a geological structure running through there that was unknown at the time of the design.
Eleanor Magcynski (Analyst)
Okay, so then for next, is there any kind of subsequent stopes, I guess, like on each side of it that you know where the structure is so you can kind of place your raises a bit differently going forward? Is that kind of the plan? Basically?
Jeff Huffman (Chief Operating Officer)
Yeah, great question. I mean, any of this knowledge will continue to improve designs in the future. As far as that localized issue, that’s going to remain at the back end of 910. We don’t think that that’s going to affect anything. El, the other thing that I think we spoke to was the sequencing. And so not just being the tonnage that was hung up in the stopes themselves, but, you know, the whole sequence of the level was interrupted. So it was an effect, obviously, that went beyond just the one particular stope.
It forced us to change the sequencing of the entire quarter on that level.
Eleanor Magcynski (Analyst)
Well, I mean, it’s a good thing that you guys have more stopes off the hop. I mean, before it was time. So it’s nice that you have a bit more flexibility to do that. On that, just curious what the breakdown is between longhole stopes and other kind of ore headings that you guys are currently mining. What kind of flexibility do you have going forward?
Jeff Huffman (Chief Operating Officer)
Well, I think as far as mining methods, Eleanor, McCreedy West remains to be a longhole operation. We are looking to do what I would call various methods and sizes of longhole. For instance, in the upper part of the mine, we have some narrow longhole that we’re going to be executing in Q4 and coming into 2027, as well as a new zone that we’ve indicated over the course of drilling in 2026, a little bit lower in the mine. So, yeah, I would say that the mine remains longhole of various sizes, with other ore obviously being produced from ore development.
Eleanor Magcynski (Analyst)
Okay. Yeah. Is there still about three stopes at a time that you guys kind of have under development?
Jeff Huffman (Chief Operating Officer)
Yeah, I mean, under development, for sure. There’s always at least three production areas. As Jason said earlier, McCreedy West is a small operation. So, you know, a couple of stopes in production and a couple of stopes in development are generally the course of the operation over 2026. I think we’ll see a little bit of change in 2027 as the, what I would refer to as increased development over 2026 from, you know, historically what the mine has seen in years previous to 2026, it will now start to sort of bear some fruit with respect to diversifying the mining plan.
So yeah, we’re encouraged of putting a good plan together for 2026.
Eleanor Magcynski (Analyst)
Wonderful. Or
Jeff Huffman (Chief Operating Officer)
2027. Sorry,
Eleanor Magcynski (Analyst)
I knew what you meant. On the last one for this, on the shared combination for the Levack Mine Complex, have you done any rough math, or is there a rough idea of what the anticipated G&A or the combined G&A or cost saving could be on that? Obviously it’s kind of a logical move. But just curious if you guys had a rough idea of a dollar-per-ton adjustment between the two mines. Yeah, that would be helpful.
Jeff Huffman (Chief Operating Officer)
Well, yeah, another great question, Eleanor. I think what I can say to that is we really don’t have a comparison to sort of come from. I mean, we’re just bringing Levack online now. It seemed like a logical choice for us. The skill sets that we’ve brought into the organization, I think operationally and from a technical services perspective and a maintenance perspective, we want to make sure that those resources have eyes on both the operations. And I think with the proximity of the two mines being as close as they are, being connected underground, being able to share those strengths, I think was, you know, it was a no-brainer for us. So bringing mining managers over from McCreedy that already have the experience of how we’re operating there and spreading out some of the technical service strength and maintenance strength that we brought into the company, yeah, it was just a no-brainer for us.
And again, it brings a bit of continuity as well to the business in standardizing the way that we’re operating the mines. And so I would say that there’s a lot of—I think it was more of a focus really on just making sure we’re doing the right thing for the operations. I don’t know that I have a cost comparison because we really haven’t brought Levack online as of yet. It’s still really considered a project within our organization. So yeah, I think more for us just about making sure that we’re utilizing the strengths of the business across both of the operations.
Eleanor Magcynski (Analyst)
Thank you very much. I just have one question for Dave on the recent exploration, but I appreciate all the feedback on the op side. So the last one about the new zones, Dave, I was just curious if you could speak to the orientation of what was intersected today, both, I guess, in the ramp and then the other mineralized zone that was hit before R2. Just kind of what you’re thinking. I know it’s pretty hard to say off of either a single hole or one intersection through a ramp, but yeah, what are you thinking of how this is related to either R2 or the other mineralized zones that you’ve seen in the mine itself?
Dave King (Senior Vice President, Exploration and Geoscience)
Yeah, thanks for the question. I guess, first, the bit of mineralization in hole 80, which was partway down to the R2 target, that one’s a little more complicated. There are some drill holes nearby that hadn’t intersected the same structure. It seems to be associated with remobilized chalcopyrite along the margins of a diabase contact. So we’ll have to follow that up and do some interpretation and get a better understanding maybe of the orientation of the diabase before we follow that one up.
The mineralization in the ramp, you know, that one gets me a little more interested. I think it demonstrates how we really don’t necessarily understand the full controls on mineralization in the footwall at Levack, and we can still intersect mineralization within 30 meters of a known zone. It has been identified that it seems to be related to a breccia unit. Looks like it’s more subvertical-lying structure that’s trending more north-south. So again, like we see at LFD or the R2 zone, there seems to be a more vertical component to Levack footwall deposits than we might have appreciated in the past.
So that one currently has a diamond drill rig moved up to that level and we’re testing it with some short holes just to get a better handle on the orientation of that.
Eleanor Magcynski (Analyst)
That’s great. Thanks so much and thanks to everyone and we’ll chat again soon, I’m sure.
OPERATOR
Thank you. And as a reminder to ask a question, please press star 11 on your telephone. One moment for questions. And our next question comes from Dalton Barretto with Canaccord Genuity. You may proceed.
Dalton Barretto (Analyst)
Thanks, operator. Good morning, guys. A lot of my questions have been answered already, but I’m going to follow up on sort of that same vein of questioning. I’ll start with the operations. Maybe this one’s for you, Jason. So, you know, given this issue with the structure, it looks like you fell short in both tonnage and grade. And, you know, if I back into Q4 based on the new guidance, it looks like the Q4 grade is somewhere in the high twos. And I’m just trying to understand what would it have been if you hadn’t encountered these issues and how does that sort of translate to how we should think about H1 ’27.
Jason Jessup (Chief Executive Officer)
Yeah, so, you know, our plan would have been within our guidance range. So that 3.2 to 3.5% is where we were aiming for. And that was the grade of the stopes that we were planning on taking. Obviously there’s been changes in the sequencing which are bringing in that lower grade, as you’ve correctly identified, which we think will be in that sort of higher 2%. Again, looking into next year, we will put out guidance early in 2027. But, you know, we are, I’d say, very encouraged by the drilling that’s been done on the west side of the 700 footwall zone, which is something we’ve talked about in the past, but we’re currently developing on. And that will become part of our 2027 mine plan, which is great in that it doesn’t have mined out areas on multiple sides like a lot of the remnant mining that we have done in 2026.
So fresh grounds, good development in areas that, based on the drilling we’ve done, are very encouraging. So I would expect next year grades to be very similar to what we originally guided this year. And again, we’ll put out more information on that in 2027.
Dalton Barretto (Analyst)
Yeah, thanks for that, Jason. And then maybe staying on 2027, shifting gears to Levack as you press forward towards the restart. What are some of the critical path items we should be watching for next year?
Jason Jessup (Chief Executive Officer)
Yeah, like we had mentioned earlier, one of the projects that is very important to us is the refurbishment of the production hoist. That project is something that is a top priority for us because it really allows us to increase the amount of development we’re doing and hoist first ore, first production ore from development ore, which we would anticipate starting to come in Q2. So that’s an important project, I think, to be watching for. And really that’s what kind of unlocks the rest of our plan for 2027 at Levack mine.
Dalton Barretto (Analyst)
That’s great. And then this combination of Levack and the McCreedy West into one sort of complex. I heard Jeff’s comments there. I’m just trying to understand, is there something you can do now that you couldn’t do when they were separate assets? And also on that, any implications at all to the Franco stream and how you manage that?
Jason Jessup (Chief Executive Officer)
Well, first part of that question. So, yeah, as we start to look at our budget and the people we will need at Levack mine, you know, there were some obvious synergies with people we already had that could be, again, as we mentioned, surface supervision and ore handling on surface and some of our maintenance funds. And again, as Jeff said, we had some really strong people in the technical side that could be shared across both operations, as well as strong operational people that we could also share.
So that was kind of the premise behind that. Now, as far as the Franco side of it, obviously the McCreedy West mine, the entire property, is covered under the Franco stream agreement, with at Levack mine only being the Morrison deposit and a very small zone called the 1900 zone. So we don’t plan on doing anything differently right now, but what it does allow us to do easier is, you know, use resources at McCreedy West to, you know, in the future transfer over to Levack mine, and, you know, we will use our resources, you know, in the best business sense that we can.
So if we can make more money with the resources applied to Levack mine as opposed to McCreedy West mine, then that’s a smart business decision. We’ll do that. I’m not going to speak specifically on how that may affect or not affect the Franco stream, but, you know, obviously Levack mine looks very attractive without being burdened as much as McCreedy West with that stream.
Dalton Barretto (Analyst)
Understood, thanks for that and maybe one last one for Dave. When I look at the exploration update today and sort of focus mostly on the R2 intercepts, the grades still look very compelling, but we’re still for the most part at widths less than a meter. And I’m just wondering sort of, you know, when and how you think that’s going to change. Are you still drilling around the edges? When do you think you’ll start, you know, getting sort of the meat of this thing?
Dave King (Senior Vice President, Exploration and Geoscience)
I’d like to say anytime soon. I think what we’re seeing with the current drilling, sort of in the range of 2 to 3 ft or foot thick veins, looks like currently that’s more of a true width where some of the holes we had drilled in the past were likely down dip a bit. So as far as where we’ve been drilling on that mid level where the 2950 level could cross, that seems to be about the average vein width. I’m always hopeful that with tighter drilling the veins can change very quickly.
You just need a little bit of sinistral shearing and you can thicken the vein up in various places. But I think that’ll come with more detailed, tighter drilling.
Dalton Barretto (Analyst)
Got it. Thanks, guys. That’s all for me.
OPERATOR
Thank you. I would now like to turn the call back over to Greg Huffman for any closing remarks.
Greg Huffman (Senior Vice President, Capital Markets)
Before we conclude, I would like to take a moment to acknowledge Remembrance Day yesterday and recognize and thank all those who served and continue to serve our country. We are grateful for their service and sacrifice. Thank you again for joining us today and for your continued interest and support of Magna Mining. Have a great day.
OPERATOR
Thank you. This concludes the conference. Thank you for your participation. You may now disconnect.
Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company’s SEC filings and official press releases. Corporate participants’ and analysts’ statements reflect their views as of the date of this call and are subject to change without notice.